Tebboune Mandates Wage Hikes, No New Taxes in 2027 Budget

President Abdelmadjid Tebboune has issued clear directives for the 2027 Finance Law, notably ordering the inclusion of previously committed salary increases and explicitly rejecting any new taxes that would diminish citizens' purchasing power. These instructions were given during a Council of Ministers meeting where the draft 2027 Finance Law was subsequently approved. The measures are intended to benefit both the middle class and those with limited income, reinforcing the government's commitment to social welfare.

The presidential orders underline a core objective of Algeria's financial policy for the upcoming year: safeguarding the purchasing power of its citizens. President Tebboune had previously committed to a revalorization of salaries in 2027, affirming that these increases, representing the remaining 53% of promised adjustments, would be integrated into the next year's budget. He indicated that the implementation of these increases could occur in one or two tranches, depending on prevailing financial conditions.

These directives are part of a broader strategy to balance increased social spending with efforts to accelerate major investments and diversify the economy away from hydrocarbons. The 2027 budget aims to preserve purchasing power, enhance social cohesion, prioritize projects with high economic and social impact, develop infrastructure, and reduce logistical costs. This approach highlights Algeria's focus on sustainable growth and economic diversification, with the well-being of its population at the forefront of its financial planning.